SeeThruEquity Issues Update on Nephros, Inc. (NEPH)

NEW YORK, NY / ACCESSWIRE / March 28, 2017 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has issued an update on Nephros, Inc. (OTCQB: NEPH).

The report is available here: NEPH Update Note.

Based in River Edge, NJ, Nephros, Inc. (OTCQB: NEPH “Nephros”) is a commercial stage medical device company, with innovative filtration products targeting large market opportunities including hospital infection control and advanced renal care. Nephros was founded by two healthcare professionals associated with Columbia University Medical Center / New York Presbyterian Hospital to develop a hemodiafiltration (HDF) device as an alternative to hemodialysis. Nephros has developed proprietary technology to accomplish this goal, and in addition to commercializing an HDF System, Nephros has also developed advanced filtration devices for a variety of applications where ultrapure filtration is of potential value.

Investment Highlights

On March 17, 2017, Nephros reported full year 2017 results, with highlights as follows:

Revenues grew by 19% in 2016 to reach $2.3mn, versus $1.9m in 2015

Product revenues of 2.1mn rose by 17%, while License & Royalty revenue increased by 47% YoY from a small base.

NEPH received 510(k) clearance for new 10″ filters for HydraGuard™ for infection control and EndoPur™ for hemodialysis.

EPS narrowed to ($0.06) for the year, versus ($0.09) in 2015.

Nephros management guided to growing product revenues by 100% in 2017 based on new products, and set a goal of reaching cash flow breakeven by mid-2017.

Solid 4Q16 results to end the year

Nephros ended 2016 with a solid performance in the 4Q. Despite having much of management’s efforts focused on regulatory submissions and new product development / introductions, the company managed to grow its overall business by 19.3% during the year, with controlled operating expenses. Product revenues grew sharply in 4Q16, in particular, during which they rose by 40% sequentially. Growth was due to the launch of the new S100 point of use filters with rising demand for hospital infection control products. For the full year 2016, revenues came in at $2.3mn versus $1.9mn in 2015.

Encouraging guidance on new products, targeting cash flow

Nephros CEO, Daron Evans issued an encouraging outlook when the company released 2016 results. Evans stated that the company is now targeting positive cash flow within six months, as Nephros is expected to benefit from rising product revenues. Significant drivers are expected to be continued distribution of the S100, as well as the launch of HydraGuard™ for infection control, which received FDA 510(k) clearance in December. Additionally, Nephros received regulatory clearance for the new 10″ EndoPur™ filter for use in hemodialysis in March, and is planning to launch this product in 2Q17.

Price target unchanged at $1.65

We are leaving our price target for Nephros unchanged at this time at $1.65. We view Nephros as an intriguing high risk / high reward investment opportunity in the medical instruments industry with several potential catalysts in 2017 stemming from growth from new product launches and guidance for reaching cash flow breakeven in the next six months.

Please review important disclosures on our website at www.seethruequity.com.

About Nephros, Inc.

Nephros is a commercial stage medical device company that develops and sells high performance liquid purification filters, as well as a hemodiafiltration system for the treatment of patients with End Stage Renal Disease. Its filters, which it calls ultrafilters, are used primarily in medical applications. Nephros ultrafilters are used by dialysis centers for the removal of biological contaminants from the water and bicarbonate concentrate feeding hemodialysis devices. Additionally, Nephros ultrafilters are used in hospitals and medical clinics as an aid in infection control by retaining bacteria (i.e. Legionella, Pseudomonas), virus and endotoxin from water used by patients. http://www.nephros.com

About SeeThruEquity

Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative business model for equity research that is not paid for and is unbiased. SeeThruEquity is the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion.

SeeThruEquity is approved to contribute its research reports and estimates to Thomson One Analytics (First Call), the leading estimates platform on Wall Street, as well as Capital IQ and FactSet. SeeThruEquity maintains one of the industry’s most extensive databases of opt-in institutional and high net worth investors. The firm is headquartered in Midtown Manhattan in New York City.

For more information visit www.seethruequity.com.

Contact:

Ajay Tandon
SeeThruEquity
info@seethruequity.com

SOURCE: SeeThruEquity

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